Newcrest Mining has received regulatory and funding approval for the Havieron joint venture (JV) with Greatland Gold in Western Australia.
Havieron’s current regulatory approvals allow Newcrest to begin key early works at the project.
The approvals were followed by Newcrest’s board accepting $146 million in funding to advance construction of the project’s box cut, exploration decline and associated surface infrastructure, which includes evaporation ponds, explosives magazine, maintenance workshops, fuel facilities and an administration building and laydown area.
Newcrest is also finalising its water management plan at Havieron to progress additional approvals and permits required for the project’s underground mine operation and associated infrastructure.
Newcrest managing director and chief executive officer Sandeep Biswas said the Havieron project could start commercial production as soon as three years from initiating the box cut and exploration decline.
“We continue our journey towards potentially achieving commercial production from the Havieron Project within three years from the commencement of the box cut and exploration decline,” he said.
Newcrest has established a loan agreement with JV partner Greatland Gold, providing the company with $50 million in loan facilities, which will enable funding for early works and growth drilling activities.
The Havieron project has an inferred mineral resources estimate of 52 million tonnes at two grams of gold and 0.3 per cent copper for 3.4 million ounces of gold and 160,000 ounces of copper.
In November 2020, Newcrest announced that it had met its stage 3 expenditure requirement at Havieron of US$45 million (57 million), allowing it to earn an additional 20 per cent in the JV for a total interest of 60 per cent.
The company has the option to earn up to 70 per cent through total expenditure of US$65 million.